Termination Of Guaranty Agreement
CONSIDERING that the beneficiary is in a [commercial transaction, SUCH AS A DISTRIBUTION AGREEMENT OR A SUPPLY AGREEMENT] with [other PARTY TO COMMERCIAL TRANSACTION] („Obligor“), dated [Date][OF EVEN DATE HEREWITH] (this agreement, and any modification, modification, waiver, extension or complement to the agreement, collectively, the „contract“); ⇒ pro beneficiaries: this clause contains an unlimited guarantee requiring the surety to answer for all the principal debtor`s claims with respect to the secured bonds. 4. Application. In the event of default on the debtor`s bonds, the surety pays these amounts to the deposit on the recipient`s written request, provided that the delay in the recipient`s request for payment does not affect the guarantor`s obligations under that guarantee. The rights, powers, remedies and privileges provided by this guarantee are cumulative and not devoid of rights, powers, remedies and privileges provided by other agreements or by law. Comment: This „merger clause“ is intended to demonstrate that the written agreement is the final and complete agreement of the parties and that it must be understood. The guarantee form allows a guarantor to free himself from a financial form and/or legally linked to a contract. This is a common practice for loan contracts and lease documents after the contract has expired or has been fully executed. Release is recommended, even if it is not necessary, in the presence of a notary. In the case of international transactions, a creditor can be used instead of a guarantee to support the transaction. Comment: This section outlines the obligations of the bond, including the nature of the guarantee. This agreement contains a guarantee of payment, i.e.
if the debtor does not pay, the beneficiary can act directly against the bond without the beneficiary having initiated the first proceedings against the debtor. A payment guarantee differs from a collection guarantee in this respect. As part of a recovery guarantee, the beneficiary must first exhaust his claims against the debtor before he wants to assert his rights against the guarantor. A performance guarantee requires the guarantor to keep the promise that the debtor made but did not keep. The commitment may involve a payment obligation or other obligation (for example. B for the provision of goods or services). 9. Final agreement. This guarantee constitutes the whole agreement between the parties with respect to the purpose of this agreement and replaces all previous or simultaneous written or oral agreements. The term „unconditional and absolute“ means that no conditions must be met or that there is no need to appeal against the debtor before the rights become enforceable against the guarantor. The term „irrevocable“ means that the guarantee cannot be revoked as long as the underlying trade agreement remains in force. Comment: Considerations that may begin with the more formal „WHEREAS“ but should not begin with the more formal „WHEREAS“ define the context of an agreement.
Since an important element of a guarantee is to take into account the commitments made by the surety, the recitals are useful in determining the purpose of the guarantee and the relationship between the debtor under the basic agreement and the guarantee.Share